In the second quarter (Q2) of 2024, Nigeria saw a 5% increase in smartphone shipments, signaling continued growth in the country’s mobile market.
This surge is attributed to several factors which include consumer demand, improved availability of affordable smartphone models, and the ongoing digital transformation across various sectors in the country.
In the broader African landscape, Canalys research disclosed that the region’s smartphone market expanded modestly by 6% amid economic headwinds. North African markets led the continent with robust double-digit growth in smartphone shipments.
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Algeria experienced an impressive 52% surge, amid ongoing import challenges. This significant increase highlights the market’s resilience and growing consumer demand. Egypt also saw a strong 27% rise in shipments, fueled by local currency stabilization and the government’s initiatives to promote local manufacturing. This has attracted major brands like Xiaomi, Vivo, Samsung, and possibly Apple, as HMD is already in discussions.
In contrast, Morocco encountered a sharp 24% decline due to vendors grappling with import issues following higher customs duties imposed earlier in the year, Sub-Saharan Africa faced its own set of challenges. South Africa was the exception, achieving a 13% growth rate, influenced by the post-election political landscape, which has created both uncertainty and opportunities for reform.
Kenya, the economic hub of East Africa, saw a 22% decline in shipments, largely due to ongoing political tensions within the country. Meanwhile, Nigeria, the region’s leader in shipment volumes, posted a modest increase. This growth was dampened by persistent inflation, currency risks, sluggish GDP growth, and decreasing disposable income.
The surge in smartphone shipments across Africa reflects the growing reliance on mobile technology for communication, banking, e-commerce, and other digital services. As more Africans embrace digital platforms, the demand for smartphones, especially those with advanced features will rise.
Moreover, local and international smartphone manufacturers are increasingly focusing on the African market, offering competitively priced devices that cater to a broad range of consumers. This growth in smartphone shipments is also indicative of the broader trend where mobile penetration is expanding rapidly, driven by youthful populations and the increasing availability of mobile internet services.
In line with this growth, feature phones are reported to hold a substantial 52% share and with many opportunities for expansion for smartphones. Notably, in sub-Saharan Africa, device financing is emerging as a critical driver, making smartphones more accessible to the average consumer.
“In the near term, scaling innovative financing models like Kenya’s M-Kopa with support from smartphone vendors like HMD, telecom operators, and governments will be crucial to accelerating this transition. Over the long term, local manufacturing will be key to reducing costs. While countries like Egypt are taking the lead, other, regions are expected to follow suit. Addressing broader challenges such as consumers’ willingness to pay, digital literacy, high taxation on devices and currency fluctuations will be essential for unlocking the full potential of smartphone adoption across Africa”, the report noted.